Metals: When Inflation Takes Hold

Sooner or later, worldwide central bank easy credit and money printing will come home to roost. When that happens, commodity prices in virtually every sector will respond in an inflationary fashion as more money chases fewer goods. Therefore, the aforementioned classic definition of inflation will take hold, impacting precious metals and copper in what will likely be the most bullish moves in many years.

It’s difficult to believe that this might occur, given the fact that all precious metals and copper currently remain in moving average downtrends based on weekly charts. As shown below, gold, silver, platinum, palladium, and copper are deeply entrenched in moving average channel downtrends, with no end seemingly in sight. But we are contrarians, we seek to find opportunity where most other traders find despair. Sit tight, await moving average channel upturns, and keep your powder dry.

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